OSK Property to launch first high-end project at KLCC

OSK Property Holdings Bhd (OSK Property) is set to launch its first high-end project in the Kuala Lumpur city centre. Located on Jalan Yap Kwan Seng, the one tower high-rise residential development is a five-minute walk to KLCC.

According to its executive director and chief operating officer Gerard Tan, the gross development value (GDV) at this moment is at least RM160 million.

“We hope to get the development order by May and launch earliest five to six months down the road, towards the end of the year,” he added.

OSK Property has been slowly making its way into the Klang Valley after launching projects in Sungai Petani and Seremban.

“Our next major launch is Sutera Damansara in Sungai Buloh. We’re in the midst of putting up the show units. They should be ready in July or August and we will launch then,” Tan said.

Other upcoming launches this year include new parcels within its existing developments. According to Tan, there are a few residential launches lined up for its Sungai Petani development named Bandar Puteri Jaya, as well as a parcel of semidees for its Mont Jade project located in Seremban.

“In Sungai Petani, we have a balance of 1,500 acres. At Mont Jade in Seremban, we still have quite a bit to do. We started the first phase last year, now we’re going to launch the second phase. There will be three or four phases (in total),” said Tan, adding that its Taman Sri Banyan development in Country Heights will be completed by the middle of this year.

“In hand now, based on landbank, we have enough to see us through for at least the next five years. We’re talking about RM4 billion to RM5 billion worth of GDV,” he said. It has about 2,000 acres of undeveloped land.

As for land acquisition, Tan said that it has received a lot of offers and proposals but has yet to commit to any. It has not ventured overseas, but is open to offers and would most likely be focusing on the Asian region if there were any concrete plans.

On its development cost, Tan expects it to be higher this year due to launches with higher value in the pipeline. He also said that the rising cost of raw materials has not affected the company. “However, we noticed from the recent tender exercises that we carried out, a lot of material has gone up; probably 15% overall in the last three to six months,” he added.

He attributes the company’s well-planned products and build-then-sell (BTS) scheme to the “positive feel” of the company. He also said that it would conduct feasibility studies to look at market demand and the market trend before proceeding with any of its launches, in order to counter the rising prices of raw materials.

“At some places, we might be able to raise selling prices about 5% to 10%, if the market can take it. In some places, we may have to delay one or two parcels because of the cost,” said Tan, adding that it would be very cautious with its projects this year. - By The Edge Daily